Assessment of policies and socio-economic factors affecting pesticide use in the Philippines

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Abstract

A logit model was employed to determine the relative importance of socioeconomic
factors influencing the misuse of pesticides on vegetables in Central Luzon,
Philippines. The analysis revealed an increase in pesticide misuse associated with the
following factors: a high value placed on advice from a chemical company
representative; membership in a cooperative, village or farmers' association; and
visits by a Department of Agriculture technician to discuss non-pesticide means of
controlling vegetable pests. Those factors which reduced pesticide misuse included:
increased age and educational attainment; access to integrated pest management
training through the Farmer Field School; receiving credit from a cooperative; and
agreement with the perception that killing natural enemies could hasten pest
infestation.
The effective rate of protection on nine pesticides was calculated to quantify
the net effects of pricing and exchange rate policies on the degree of subsidy or tax
experienced by pesticide importers. It was found that the effective rate of protection
for the nine pesticides was between negative 12 and 25 percent when the exchange
rate effects were accounted for. However, the rate of protection became more
negative when the equilibrium exchange rate was used indicating that exchange rate
overvaluation offset the tax pesticide importers face. In addition, the analysis
indicated that pricing and exchange rate policies have created a six to eight percent
subsidy on pesticide prices for the years 1989 to 1993. This subsidy on pesticides has
increased both consumer and producers welfare and the quantity of pesticides used in
the Philippines.